China-Cambodia free trade agreement is about to be signed, it’stime for investment in Phnom Penh

    According to the Ministry of Foreign Affairs, Chinese State Councilor and Minister of Foreign Affairs Wang Yi will visit Cambodia from October 11th to October 12th to hold discussions on the China-Cambodia Free Trade Agreement and investment in Cambodia in the post-epidemic era. It is worth noting that the China-Cambodia Free Trade Agreement is about to be signed. With the China-Cambodia free trade agreement, Cambodia will have more than 340 products exported to China, 95% of which will enjoy tariff-free treatment, and the other 5% will be reduce or cut. By then, Cambodia's exports to China will increase by 20%. It is estimated that the bilateral trade volume between China and Cambodia will exceed 10 billion US dollars in 2023.

   (HE Wang Yi, Chinese State Councilor and Minister of Foreign Affairs and Samdech Hun Sen, Prime minister of Cambodia,)

     As the capital of Cambodia and the largest city in Cambodia, Phnom Penh has developed rapidly and has been at the forefront of many cities in the Kingdom. With the signing of the China-Cambodia Free Trade Agreement, Phnom Penh, as the economic center and commercial center of the Kingdom of Cambodia, will surely introduce more Chinese investment and even more global investment to help Phnom Penh develop into an international metropolis.

The Developmentof transportation in Phnom Penh

    Phnom Penh, the capital of the Kingdom of Cambodia, is also the political, economic, cultural, religious and transportation center of the Kingdom of Cambodia. Phnom Penh is located in the delta between the Mekong and Tonle Sap rivers. With a population of approximately 2.1 million, in addition to locals in Cambodia, here is a gathering of elites from all over the world.

    Phnom Penh has developed transportation resources. The Phnom Penh International Airport, located about 8 kilometers from the city center of Phnom Penh, is open to more than 20 cities in China, including Beijing, Shanghai, Guangzhou, and Xiamen. There are also international routes to Japan, South Korea, Singapore and other countries. From the perspective of waterway transportation, although Phnom Penh does not face the sea, as an important inland port, Phnom Penh is also very convenient for river transportation. Through the Mekong River, you can reach Kratie, Steung Treng and other provinces, and you can also directly sail into Thailand, Vietnam, China and other countries; through the Tonle Sap River, you can reach Tonle Sap Lake, the largest lake in the Indochina Peninsula. From the perspective of land transportation, Battambang, Kandal, Kampong Speu, Sihanoukville can be reached directly by rail transportation, and more importantly, the Phnom Penh to Battambang railway line can lead to Bangkok, Thailand. As the largest city in the Kingdom, the overall terrain is flat and roads extend in all directions. With Phnom Penh as the center, a number of highways have been built to radiate multiple provinces, such as National road No. 4 that goes directly to Sihanoukville, National road No. 3 to Ho Chi Minh City, Vietnam, and so on. The transportation in the city is equally convenient. There are many modes of transportation available for tuk-tuk, motorcycles, buses, and taxis. However, for foreign tourists, the most used tuk-tuk , which can be called by a mobile phone, which is convenient Fast.

    (Phnom Penh international airport)

    The city of Phnom Penh is divided into 12 administrative districts. The core areas are Chamkamon District, Doun Penh District, 7 Makara District, and Toul Kok District. The remaining eight areas are sub-areas. However, as the city expands, the core area also tends to extend to the sub-area . Chamkarmon has many tourist attractions, as well as embassies of many countries including the Chinese Embassy. Among them, the BKK1 area is the most sought-after golden residential area in the center of Phnom Penh. Daun Penh District is the earliest developed area in Phnom Penh. It is also the seat of the Central Government of the Kingdom of Cambodia. It is also the economic center of Phnom Penh. There are many domestic and foreign financial institutions and banks, including Vatanak Bank and Canadia Bank. 7 Makara District is the smallest of all the administrative districts in Phnom Penh, but it is also one of the elite districts of Phnom Penh. It integrates the administrative center, cultural center, and entertainment center. Many foreign institutions are also concentrated in this area.

What's the level of real estate development in Phnom Penh?

    The degree of real estate development can often reflect the level of economic development of a city. Phnom Penh is the most economically developed city in Cambodia. Between 2013 and 2018, apartment prices increased by more than 150%. It ranked fourth in the list of world-renowned cities in return on investment in 2018, far surpassing first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen. This brings together developers and investors from all over the world. If you are in Phnom Penh, you will find construction sites everywhere in the city. According to Compass data, Phnom Penh occupies 70% of apartment projects, and the rental and second-hand housing market is also the most active in Phnom Penh.

    In the first half of 2020, although the new pneumonia epidemic is aggressive, its impact on the Cambodian real estate industry is controllable. In early July, the Ministry of Land, Planning and Construction of Cambodia issued a report showing that there were 2,522 construction projects in Cambodia in the first half of this year, with a total investment of 3.842 billion US dollars, an increase of 13% over the same period last year. Some people in the real estate industry said that the real estate in Phnom Penh is still relatively low compared with neighboring capitals, and the real estate in Phnom Penh will maintain steady development in the future.

Multiple large-scale infrastructure projects in Phnom Penh drive real estate development

    In 2023, Phnom Penh will usher in the 32nd Southeast Asian Games hosted by the Kingdom of Cambodia as the host for the first time. The Cambodian government attaches great importance to this event. In all aspects, the image of Phnom Penh city has been enhanced, and many large-scale infrastructure projects have taken off, including the new National Stadium in Chroy Changva District, the new Phnom Penh International Airport, and the new two new trunk roads.

    (New stadium project)

    In addition, there are many infrastructure projects under construction and planning in Phnom Penh, including Cambodia's first expressway under construction, the Phnom Penh-Sihanoukville Expressway. As the expressway between the capital of Cambodia and the largest special economic zone, the "Phnom Penh-Sihanoukville Expressway" is 190 kilometers long and has a total investment of approximately US$2 billion. It is expected to be completed in 2023. Coincidentally, the planned Phnom Penh-Bavet Expressway is also very important. It was constructed by China Railway International Co., Ltd., with an estimated cost of 3.8 billion US dollars and a total length of about 130 kilometers. After completion, Phnom Penh can directly connect to Ho Chi Minh City, Vietnam, as an important road from Phnom Penh to ASEAN. 

    (high way road)

    Recently, news about infrastructure projects has occupied the headlines of various media, including the completion of the investigation of the fourth ring road in Phnom Penh, the completion of the Phnom Penh rail project, and the comprehensive upgrade of National road No. 48. With the continuous improvement of various infrastructure in Phnom Penh and the rapid economic development, more and more investors will focus on Phnom Penh. For the real estate industry, the time to invest in Phnom Penh is just right.